A Report on Supply Chain Management for the Vodafone Organisation

This report provides a comprehensive analysis of Vodafone's supply chain management, addressing key aspects such as the impact of globalisation, the role of e-commerce and information systems, and the implications of outsourcing. It explores the challenges and opportunities presented by these factors, including financial, political, legal, economic, social, and technological considerations. The report evaluates Vodafone's strategies, including its approach to suppliers and the use of e-commerce platforms like the Vodafone App. It also delves into the importance of supply chain relationships, risk management (both external and internal), and the competitive landscape. The report concludes with recommendations for improvement and includes an appendix with relevant company information and references. The analysis considers the telecommunication business and the importance of customer satisfaction in today's competitive market. The report also considers the importance of competitive advantage in the telecommunication market.

Supply chain
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of Globalisation..........................................................................................................1
E-Commerce and Information Systems..................................................................................3
Evaluating various companies and level of sophistication in electronic commerce..............6
Recommendations..................................................................................................................7
CONCLUSION..............................................................................................................................10
APPENDIX....................................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Supply chain management is crucial for every telecom business in order to drive their
business performance by managing supply process of products and services and suppliers as
well. The report will demonstrate potential risks faced by Vodafone organisation as it interact
with their suppliers, and several recommendations as to how they could be avoided. The main
issues will be discussed such as globalisation, outsourcing and e-commerce and information
system. Different information is covered in this report towards internet facilities used by telecom
businesses. Sites and information is collected to evaluate level of sophistication in the use of
electronic commerce. A reflective part is included in the report to explain own learnings from the
assessment. Finally, the report will cover company introduction and information in the appendix
part.
MAIN BODY
Supply chain management
It can be said that a telecommunication business requires high level of customer
satisfaction and loyalty in order to succeed in today's competitive world effectively. Vodafone is
able to provide better and high quality services to their customers in the market in order to build
a strong customer base which is effective for the profitability and production as well. Supply
Chain Management (SCM) has an important role to achieve business objectives and goals
efficiently (Ayers and Odegaard, 2017). SCM process involves coordination of different
functions of business such as marketing, sales, functions, finance, IT and technology also across
the firm. The firm should formulate policies, strategies, plans, services and effective flow of
goods and services in order to meet the consumer demands and requirements in the market.
Management of supply chain will help business to establish an effective position in the market in
terms of competitive advantage, performance management and gain global telecommunication
market effectively. Vodafone suppliers required to comply with ethical purchasing. The China
sourcing centre also enabled services to introduce with new suppliers from emerging market
which will help to boost competitive advantage of business.
Impact of Globalisation
Financial: The market of global business is increasing day by day. By the former character of
the twenty-first century to a higher degree $1.5 trillion in domestic currencies cost swapped day-
to-day to abide the amplified degrees of deal as well as investing. The financial position of
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business is affected by the globalisation such as competitors, trends and many more. Thus, the
firm should maintain factors discussed below in order to operate business functions effectively
which lead towards profitability and provide strength to financial activities. Political factors has a
main role and influence the way company progress to develop infrastructure for the business to
operate in a particular nation effectively. For an example, a recent accident or conflict in Europe
had a great impact on business for long time (Beske and Seuring, 2014). telecommunication
business is operating in different countries so that certain government policies, political stability,
foreign trade policy, tax policy and environmental law affect the business operational activities.
The legal factors such as laws and legislations formulated by the local government should be
considered by business that it has many rivals in the market. business faced many legal issues
regarding copy and other pirated issues from which the business faced many penalties
effectively. Apart from this, employees also reported for company to pay less than the efforts.
Thus, the firm should manage legal factors such as consumer rights and obligations, advertising,
policies and laws along with product safety in order to increase profitability and sustainability in
the market. The firm should manage all the political factors and relationships in order to succeed.
Economic factors have both sides positive and negative for the telecommunication business. The
more economy will develop for a particular nation that helps to create chances and opportunities
for the firm in order to expand business operational activities. When the people have more
income, it will help business to formulate new policies for them as a benefit for both customer
and business. There are some economic factors that affect or create potential risk for the business
such as interest rates, inflation rates, disposable income and exchange rates effectively. Culture
development increases hard work for business in terms of providing policies, extra benefits and
other offers to attract customers in the market. Culture is different in every country where the
business is operating that such factors should be considered to manage and control the impact of
culture (Carbonara and Pellegrino, 2017). Social factors are based on culture of various people
and local belief effectively. The firm should maintain and retain flexibility in policies in order to
pertain local culture effectively. The factors such as population growth, health conscious,
attitudes and behaviour have direct impact on business performance and profitability. Thus, such
factors should be determined by firm to understand customer and what drives them effectively. It
can be said that Vodafone is famous for innovation in this world. It has an effective mission of
following contemporary trends in terms of telecommunication, technology and communication
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sphere (Gilling and Ulmer, 2016). There are so many rivals for Vodafone business. The products
offered by telecommunication services are highly compatible and technological that these are the
essential factors which help business to make a position in the market effectively. Thus, the firm
should consider some points provided as follows to improve technological factors:
 New ways of producing goods and services
 New ways of distributing goods and services
 New ways of communicating with target markets
E-Commerce and Information Systems
E-commerce can be described as selling and buying of goods and services which can be
done through funds and digital communication. E-commerce over internet is a new way of
operating business activities. The E-commerce has a great impact on telecommunication that it is
now able to provide products and services to customers through online services such as
Vodafone App. This will help customers to pay bills, information about company policies, offers
and daily recharges (Kache and Seuring, 2017). Vodafone is the world's leading international
mobile telecommunication group with approximately 280 million proportionate customer as of
30 September 2008. The network is large that information system has also an impact on business
operations. Information system in regards to company can be done by primary and secondary
data collection process which helps to collect information of business in the market through
customers. The system is reducing effectiveness of suppliers that online transactions make it
easier for the customer and business as well.
Outsourcing
It can be said that telecommunication business is operating in many countries including
India. In order to do that effective outsourcing is needed. Outsourcing is a practice in which the
the business hires a party from outside to operate and perform operations on behalf of telecom in
different nations effectively (Kreutzer and Land, 2015). The globalisation has a great impact on
outsourcing that many times effective management is not possible due to the global changes
which affect the business operational activities and profitability. Thus, company should try to
manage relationship with management of outsiders to perform activities more better and
effectively.
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Supply chain relationship
Supply chain management is crucial for the business in order to integrate with business
operations and objectives effectively. Supply chain management will also help to improve and
develop customer experience and satisfaction which produce value for them. Suppliers are the
main elements of business in terms of providing resources that drives operational activities. This
is all about business relationships across the supply chain effectively. SCM includes products
and services from suppliers, distribution chains, end users and manufacturing process. Supply
chain management also creates value for products and services offered by firm in the market
through different activities and procedures (Laudon and Laudon, 2016). The globalisation has a
great impact on supply chain relationship which affect the suppliers of telecommunication in
terms of changing prices, bargaining power and purchasing power etc. This will affect the
operational activities of business and also reduce the effective management of supply chain
within industry. SCM relationships are also affected by customer nature and demand and supply.
Supply chain improvement can be done by managing strong financial position of firm in
the market and also sales to increase profitability (Morris 2017). SCI is necessary for the
business in order to increase production and provide better and quality services to customers
effectively. This will affect the proper and appropriate management of supply chain and its
operations which also affect the profitability and production. It can be said that policies, offers,
discounts maintained by firm towards customer is also boosted by supply chain improvement
and activities. Supply chain Improvement will help business to establish a effective position in
the market in terms of competitive advantage, performance management and gain global
telecommunication market (Luthra, Garg and Haleem, 2016). The telecommunication business is
able to limit impact of supply chain by determining risks within supply chain and develop ways
to mitigate them effectively. It can be said that firm business is dependent on a limited number of
suppliers for strategically important network and IT infrastructure and associated support
services to operate and upgrade our networks and provide key services to consumers in the
market effectively (Martínez-Jurado and Moyano-Fuentes, 2014). There are so many potential
issues and risk is involved in improvement process such as financial activities, proper
management, demand and supply etc. This will also help to produce quality products for
consumers to increase business reputation and profits.
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A risk management is plan is necessary for every business in order to respond issues and
problems which occurs in firm operational activities. There are mainly two types of risks
involved in risk management plan which are described below:
External risks (Those that are outside the control): External risks can be driven by either
downstream or upstream. There are five external risks which affect the business supply chain
management and improvement. Demand risk is one of them and caused by customer
misunderstandings and demands and requirements. Supply risks caused by interruption in
products and services flow or in raw material or parts of supply chain. Environmental risks
related to economic, social, climate, government and threat of terrorism factors also affect the
business plans and strategies. Business risks has also a great impact on suppliers that financial
position of firm and sale of supplier companies also reduce the effectiveness of operational
strategies and plans.
Internal risks (Within control): Internal risks produce from the internal environment of business
and its operational activities. Manufacturing risks caused by disturbance in internal process and
operations. Planning and control risks are also associated with business suppliers that assessment
of planning and ineffective management also affect operations and process of supply chain
management (Nunes, 2017). Contingency risks occurs when business does not put contingencies
at right time and place where something is going wrong. Cultural risks has also an impact on
suppliers that culture is different in every country where the business is operating that such
factors should be considered to manage and control the impact of culture. The business is
reviewing key suppliers performance across individual market which helps to manage the
suppliers risks and evaluate strategies and plans to over come in case of supplier failure
effectively. The telecommunication business is trying hard to maintain their customer base but
the competition is also tough in market that everyone is looking to secure its share in the market
towards the potential consumer in telecommunication sector. The main competitors for Vodafone
in the market are Reliance Jio, Idea, Airtel, Tata Docomo, BSNL, Uninor, Aircel etc. These
telecommunication business are competing in the market for the purpose of retaining customer
base to increase profitability and production (Park and Koh, 2015). Competitive advantage will
help business to manage their competitors in order to make an effective position in the market
and for the effective management of suppliers as well.
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Elkington's" triple bottom line " theory
Seven drivers
In the simplest terms, the TBL agenda focuses corporations not just on the
economic value that they add, but also on the environmental and social value
that they add – or destroy.
Markets
Revolution 1 will be driven by competition, largely through markets. For the
foreseeable future, business will operate in markets that are more open to
competition, both domestic and international, than at any other time in living
memory.
Values
Revolution 2 is driven by the worldwide shift in human and societal values. Most
business people, indeed most people, take values as a given, if they think about
them at all. Yet, our values are the product of the most powerful programming
that each of us has ever been exposed to.
Transparency
Revolution 3 is well under way, is being fuelled by growing international
transparency and will accelerate. As a result, business will find its thinking,
priorities, commitments and activities under increasingly intense scrutiny
worldwide.
Life cycle technologies
Revolution 4 the business is challenged towards the work of supply chain management about the
implications
of their products in transit, in use and – increasingly – after their useful life has
ended.
Partners
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Revolution 5 new partners take place in the company in order to lead business groups. A new
form of relationship is maintained by firm with the other competitors in the market for effective
operational activities.
Time
Revolution 6 Time is money. It can be said that time agenda drives sustainability in business and
promote understandings of managing time.
Corporate governance
Ultimately, whatever the drivers, the business end of the TBL agenda is the responsibility of the
corporate board. Revolution 7 is driven by each of the other revolutions and is also resulting in a
totally new spin being put on the already energetic corporate governance debate.
Evaluating various companies and level of sophistication in electronic commerce
It can be said that telecommunication network provides same products and services in a
different way in the market towards customers. There are so many telecommunication businesses
in the market providing effective and quality services. The business plan and strategies are
different from each other as they all are operating in a same market. The main competitors for
Vodafone in the market are Reliance Jio, Idea, Airtel, Tata Docomo, BSNL, Uninor, Aircel etc.
Some of them are analysed below to understand and identify sophistication in use of electronic
commerce.
Airtel: There are many products and services offered by firm which are associated with
electronic commerce such as business internet, expertise mobility, collaboration solution, office
connectivity, cloud and managed services etc. the global business is also very effective in terms
of data connectivity, mobile solutions, global network, VSAT solutions etc. There are some
potential business needs such as cost optimisation, production, mobile workforce, customer
satisfaction and engagement and business expansion (Porter and Kramer, 2019). There are some
popular products and services also provided by firm in the market which is not easily available in
other telecommunication brands such as business internet, Toll free, broadband, land line and
MPLS effectively and efficiently.
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Reliance Jio: It can be said that reliance jio network is India's fastest growing network with 5
million happy customers. The business earned much more in less time by providing free services
for 4 to 6 month effectively. The plan becomes successful and many customers are now
connected with jio. The network is very popular at present in India. Jio provide 20% more data
than the competitors which is a strong part of business expansion in the market and to retain
customer satisfaction and sustainability. Unlimited entertainment is also available with Jio prime
membership (Ross, 2016). There are some special products and services offered by brand in the
market towards customers such as Jio 4G personal hotspot, Jio Phone and many other facilities
for entertainment, news and other social media services.
Optus: Singtel Optus is second largest telecommunication business in Australia and Headquarter
is also in Australia. The estimate revenue of business is 893 crores n 2013. the business is
providing quality and effective services in order to enhance profitability and production. In
addition to this, carrier opportunities are also provided by firm in various countries effectively.
Thus, it can be said that every business is using electronic facilities and commerce in
order to provide better, quality and fast services to consumers in the market. This will help
business to achieve its desired goals and objectives which lead towards profitability and
production (Rushton, Croucher and Baker, 2014). Such businesses are also influenced by
globalisation and potential risks which has a great impact on supply chain management and
relationship.
Recommendations
The telecommunication business external analysis will help to understand key factors that
drives business performance and and relate them to opportunities in order to expand market share
and profitability. The external environment factors analysed above will also help to understand
various nature and culture of people in order to manage operational activities effectively.
Vodafone Group Plc is the world's leading mobile telecommunications company, with a
significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States
through the Company subsidiary undertaking, joint venture, associated undertaking and
investment (Schoenherr and Speier‐Pero, 2015). A wide range of products and services are
managed and offers by business in the market towards customers that the main focus on key
growing areas will help to enhance production and profits which lead towards organisation
success. The use of technology is increasing in telecommunication sector. It can be said that in
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today's competitive world technology is the most common and essential feature of business to
manage and control effective and quality services in the market (Schönsleben, 2016). The
business should use latest techniques and technological tools such as broadband, land line and
MPSL in order to improve customer perception and satisfaction. Suppliers are the main
elements of business in terms of providing resources that drives operational activities.
Management of supply chain will help business to establish a effective position in the market in
terms of competitive advantage, performance management and gain global telecommunication
market and firm suppliers required to comply with ethical purchasing in order to enhance
productivity and profits effectively. Apart from this SWOT analysis will help to identify
opportunities, threats, strengths and weaknesses in order to make effective recommendations.
Strength: The main strength of firm is that it is one of the most popular cellular service provider
across the world (Schouten and Peeters, 2016). The total global employees are 1,000,000. digital
TV and mobile telephony services. The Zoo Zoo advertising concept make it popular among
people. The business is Tie up with international sports like Formula One and other popular
sporting event. business app is available for customer on IOS and Android in order to make
services more easier and effective.
Weaknesses: telecommunication is a well known global brand that the firm comes under
constant vigilance from global authorities effectively. Due to the effective competition, many
times business needs to fight for market share and price wars. This will affect the operational
activities and profitability.
Opportunities: There are so many opportunities for business that the firm is able to expand
cellular market globally (Silvestre, 2015). Latest techniques and technology with low cost will
help to survive in this competitive world and also towards brand growth. There is an opportunity
for business to take advantage of untapped rural markets. The main focus on MNP will help to
increase number of customers and also help towards competitive advantage.
Threats: The new entrance in the market such Reliance jio offering low price products and
services affect telecommunication profit margins and production (Song, Ming and Liu, 2017).
MNP services to other competitors can reduce active subscribers base. There are a lot of
competitors in the market for Vodafone such as Reliance Jio, Idea, Airtel, Tata Docomo, BSNL,
Uninor, Aircel etc.
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The mobile phones have limited life and also in regards to this telecommunication
business is demanding in the market. There are so many latest technology is increasing day by
day in this world that the demand of telecommunication sector will increase. People are more
demanding towards their telecom services. They required strong network and other facilities in
order to manage telecommunication sector operational activities effectively. The 7th most
valuable brand firm gives them a strong competitive advantage, the large portfolio and strong
resources are the greatest strength of business. The firm should improve and develop its
telecommunication network in order to enhance customer experience with brand which lead to
loyalty and profitability. In addition to this, Supply chain management will also help to improve
and develop customer experience and satisfaction which produce value for them.
Reflection
I am able to understand from the above analysis that telecommunication sector is the
most complex system and there are a lot of businesses operating their operational activities in
different countries effectively. I understood that telecommunication employees have limited
liability and also huge amount of capital can be raised through sale of share to local people.
Vodafone is leading is the telecommunication market and in this case the firm is able to set
lower prices than competitors and in this way increase sales revenue and maybe profits. This will
help to enhance production and profitability effectively and efficiently. Apart from the benefits I
have analysed that there are some key potential issues faced by organisation in the market such
as potential management issues, danger of take over and share loosing which reduce the market
share etc. management of operational activities is not so easy for business as the production
plants are running in various nations. I understood the importance of suppliers, supply chain
management and relationship that it has a main role in business activities. company has a low
number of suppliers that it is dependent on suppliers for strategically important network and IT
infrastructure and associated support services to operate and upgrade our networks and provide
key services to consumers in the market effectively (Trkman, Budler and Groznik, 2015). I have
analysed the impact of globalisation on business operations and further activities from which I
learned that business should manage all the political, economical, technological, social, legal and
environmental factors in order to run business smoothly and effectively that helps to increase
production and profitability. This will also help to gain competitive advantage which lead
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